Aureus
AExcellent

Union Pacific Corporation(UNP)

A

Financial data as of Dec 31, 2025Improving · Industrials

FCF Margin22.4%Free Cash Flow / Revenue
Cash Conversion130.1%Operating CF / Net Income
Free Cash Flow$5.5B
Revenue$24.5B
Net Cash-$31.6BNet debt position
Debt / FCF6.0xElevated debt burden
Current Ratio0.91Tight short-term liquidity
YoY FCF Growth+15.3%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (22.4%, 6.0x; 4.8x sector-adjusted)
→
-1Current ratio below 1.0 (0.91)
→
+1Strong YoY FCF growth (15.3% YoY)
→
+0.5Highly consistent quarterly FCF
→
FinalA

Analysis Summary

Strengths

  • Exceptional FCF margin (22.4%)
  • Excellent cash conversion (130%)
  • Highly consistent quarterly FCF
  • FCF trend is improving

Concerns

  • Heavy debt position ($31.6B net debt, 6.0x FCF)
  • High debt-to-FCF ratio (6.0x)
  • Current ratio below 1.0 — tight short-term liquidity

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin22.4%
Net Margin29.1%
Operating CF Margin37.9%
CapEx Ratio15.5%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$31.6BNet debt position
Debt / FCF6.0xElevated debt burden
Current Ratio0.91Tight liquidity
Debt / Equity1.78Moderate leverage

Quarterly FCF Trend

+15.3% YoYImproving (+15.3%)

Free cash flow per quarter

Sector Comparison — Industrials

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameUnion Pacific Corporation
SectorIndustrials
Free Cash Flow$5.5B
Revenue$24.5B
Net Income$7.1B
Operating Cash Flow$9.3B
Capital Expenditure$3.8B
FCF Margin22.4%
Cash Conversion Rate130.1%
Net Margin29.1%
Total Debt$32.8B
Total Cash$1.3B
Net Cash-$31.6B
Current Ratio0.91
Debt / Equity1.78
Debt / FCF6.0x
YoY FCF Growth+15.3%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeA
Data SourceYahoo Finance

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